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beankeeping2017
April 29, 2019
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How do I post GST (ITC) in a JE in QB Pro 2019. When I purchase for example of gas, it isn't a bill because I paid cash for it I want to make a journal entry in the GL

  • April 29, 2019
  • 2 replies
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I am trying to post GST on a purchase of Gas, which I paid cash for so it is not a bill from a vendor, so I was going to enter it in a journal entry.  I need to know which account to post the GST to.  When you enter it as a bill the GST (ITC) is included in the entry of the bill, so how do I post it manually?

Best answer by NEVER

DO NOT use a JE. Use the Write Cheques function instead. When the cheque opens, select the Amts include Tax option at the top of the cheque. Enter the Name of the Gas Station where you purchased the fuel in the Payee field. In the bottom section, under the Expenses tab, select the Expense Account where you normally record fuel expenses. Enter the Tax Code (G), and enter the total amount of the bill (including GST).

2 replies

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LauraAB
April 29, 2019

Hi beankeeping2017,

 

I can help point you in the right direction. Accountants are great resources for figuring out the finer details of entering journal entries. With their training, they'll have the best advice for the accounts you should choose and how to enter taxes. QuickBooks' Find an Accountant tool can even help you track down an accountant in your area familiar with the program. Simply type in your postal code, filter for the version of QuickBooks you're using, and you'll be on your way.

 

There are a few other ways to enter expenses into QuickBooks Desktop so that you don't have to use the journal entry or bills features. With these, it'll be a one-transaction process that allows you to add taxes to the transaction without having to figure out which accounts to hit. Check them out below.

Click the links to learn more and pick whichever one works best for you! If you need a hand, our Pro support team will be happy to help. Give us a call at 1-877-772-9158 and an agent will be able to help you whenever you need. Lines are open 24 hours a day.

 

I hope that helps. Have a great day. :)

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NEVERAnswer
April 29, 2019

DO NOT use a JE. Use the Write Cheques function instead. When the cheque opens, select the Amts include Tax option at the top of the cheque. Enter the Name of the Gas Station where you purchased the fuel in the Payee field. In the bottom section, under the Expenses tab, select the Expense Account where you normally record fuel expenses. Enter the Tax Code (G), and enter the total amount of the bill (including GST).

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    Rochelley
    May 3, 2019

    Just curious, @NEVER , why are you so adamant that the OP should NOT use a journal entry?  It is quite simple to allocate tax to the correct code in a journal entry.  I do that all the time, depending on the situation.  Granted, using the 'write cheque' window on a cash account works, but so does the journal entry.  Can you elaborate on why someone shouldn't use a journal entry?

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    NEVER
    May 4, 2019

    It's just a better practice. A JE does not have the same detail as a more appropriate transaction. For instance, the JE would report the the bank account and the expense account affected as well as the Tax account affected.

     

    A check would report who the fuel (in this case) was purchased from, the bank account affected, the payment method (by recording Cash in the cheque/ref. no) the Tax code and the Tax amount. 

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